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Monat is a relatively new MLM company - launched in 2014 by Luis and Rayner Urdaneta. The company is headquartered in Miami, Florida. Monat stands for "Modern Nature".

Within just one year of launch, Monat was pushing $25 million in annual revenue. They hit the ground running fast, and it’s really no wonder.

For starters, brother-son duo Luis and Rayner had already run one very successful direct sales company in the cosmetics niche: L’eudine. They’re a massive ($200+ million in annual revenue) MLM in Latin America that has recently started to expand into the United States.

What’s more, Monat is a subsidiary of parent company Alcora, also founded by Luis. So they already had some massive capital and experience to work with when they finally started up Monat.

One tiny problem - actually that should be many, if you follow the link to the lawsuits against Monat...

In March, multiple Monat employees confirmed that the FDA surprised the company with an inspection of their Florida manufacturing plant. Monat executives quickly issued a statement afterwards saying that the FDA “found no violations or other matters of significant concern”, which we now know is a lie based on the official inspection report released this week.

The FDA inspector found Monat cosmetics being “prepared, packed, and held under insanitary conditions whereby it may have become contaminated with filth.” The report also notes that multiple products were at risk of cross-contamination, and processing equipment was still covered in residue after multiple “cleanings” by facility staff.

It’s understandable why Monat worked hard to suppress the FDA’s report—it’s already fighting multiple class-action lawsuits that claim the company’s products cause significant hair loss and scalp lesions. These findings aren’t good for the company that claims to sell “premium” hair care products.